12/23/2023 0 Comments Spotify ipoDigital firms in every corner of the world could ignore similar conventions in their respective industries, build massive franchises, and go public ignoring conventions: they could eventually raise capital via Initial Coin Offerings (ICOs) instead of straight equity, tap retail investors directly instead of VCs, and at the most extreme, even create a market for their securities on the Block chain bypassing traditional exchanges entirely. SPOT did it in becoming the world’s most valuable music company, and while going public. Digital companies, both US and non-US firms, use the Internet’s power to build a global brand, tap VC’s for initial capital, and go public bypassing traditional intermediaries and gatekeepers. This could be the new playbook in investment banking. A new playbook emerges: Consider this listing in the larger context of financial services innovation.It’s done the same in going public: offering all investors worldwide equal access to its shares, while deliberately cutting out the ultimate capital markets gatekeeper – the investment bank. In music, it has ignored conventional norms of music creation and distribution, democratized access to customers, while caring “two hoots” for gatekeepers. A philosophy to democratize: CEO Daniel Ek’s choice to direct list is motivated by the same philosophy that drives his music strategy: use technology to democratize access to all.The Direct listing makes SPOT the most valuable music company: worth $29 billion. A significant event: Spotify’s (Ticker: SPOT) unique ‘Direct Listing’ on NYSE instead of a conventional IPO is significant when you consider it as part of a long-term attempt by private companies to raise capital and list shares on an exchange, bypassing the traditional IPO process and an underwriting syndicate. Google and Facebook did something similar, and depending on SPOT’s success, AirBnB, Uber and other Unicorns may follow SPOT’s lead.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |